New York, Feb 12, 2026, 14:18 EST — Regular session
- IBM shares down about 4.5% in afternoon trade, extending a tech-led slide
- IBM this week rolled out a new FlashSystem storage lineup built around “agentic AI”
- Traders eye Friday’s U.S. CPI report as the next market catalyst
International Business Machines Corp shares fell 4.5% to $260.66 in afternoon trade on Thursday, down $12.15 from the prior close after the stock hit an intraday low of $257.21. About 8.5 million shares had changed hands.
The drop came as U.S. technology and software shares slid again, with investors pressing companies to show returns from heavy artificial-intelligence spending. “We see this as a ‘prove it’ year for AI,” Jack Herr, primary investment analyst at GuideStone Funds, said, as the Nasdaq fell around 1.5% and the S&P 500 slipped about 1%. (Reuters)
Macro data kept the market on edge as well. Investors are looking to Friday’s U.S. consumer price index report after a run of strong labor indicators reshaped bets on when the Federal Reserve can start cutting rates. (Reuters)
IBM tried to keep its own AI pitch in the frame this week, unveiling a refreshed FlashSystem storage portfolio that it said can cut storage-management manual work by up to 90% and detect ransomware — malware that locks up data until a ransom is paid — in under a minute. “FlashSystem becomes a strategic AI partner,” Sam Werner, general manager of IBM Storage, said; IDC research vice president Natalya Yezhkova said the upgrades should help customers automate workload placement and strengthen security, with general availability set for March 6. (IBM Newsroom)
IBM is calling the new approach “agentic AI” — software agents designed to take steps on their own, not just answer questions. In practice, IBM is pushing it as a way to spot problems, tune performance and guide recovery with less human work.
The problem for the stock on Thursday was timing. Wall Street’s mood has shifted fast from who can talk about AI to who can show the payoff, and the whole complex has been repriced in real time.
But the downside case is easy to sketch: if companies struggle to show earnings lift from AI budgets — or if inflation data forces the Fed to stay restrictive — tech valuations can compress again, even for older-line names that sell into long-cycle enterprise spending.
IBM often trades as a steadier corner of tech because it leans on big corporate contracts, infrastructure and services work. Days like this one blur that line, with sellers treating the group as one bucket when the tape turns against AI.
Investors will also watch whether IBM’s product push translates into concrete customer wins as the FlashSystem models roll out in early March, or whether buyers keep delaying spending until the macro outlook clears.
The next immediate catalyst is Friday’s U.S. CPI report, due before the opening bell, which could reset rate-cut expectations and set the tone for IBM and the broader tech sector into next week.
